Ceding Company. shall notify the Reinsurer that the Ceding Company intends to contest, compromise or litigate a Policy claim. The Reinsurer shall pay its share of any settlement up to the maximum that would have been payable under the Policy had there been no controversy together with the Reinsurer's share of specific expenses involved unless it declines to endorse the contest, compromise or litigation, in which case it shall pay the full amount of its share of the claim to the Ceding Company. Compensation of salaried officers and employees of the Ceding Company shall not be included in the Reinsurer's share of the specific expenses and/or final settlement.
Appears in 3 contracts
Sources: Automatic and Facultative Yrt Agreement (General American Life Insurance Co Separate Account Eleven), Automatic and Facultative Yrt Agreement (New England Variable Life Separate Account), Automatic and Facultative Yrt Agreement (General American Life Insurance Co Separate Account Eleven)